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A property is being appraised using the Income Capitalization Approach. Annually, it has an estimated gross income of $30,000, Vacancy and collection Losses of $1,500,
A property is being appraised using the Income Capitalization Approach. Annually, it has an estimated gross income of $30,000, Vacancy and collection Losses of $1,500, and operating expenses of $10,000. Using a capitalization rate of nine percent, what is the indicated value (to the nearest $1,000)?
Please show formulas and all the work.
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